Corporate treasury deploys capital through modern cash alternative currently yielding 9%+ with daily liquidity
SAN FRANCISCO--(BUSINESS WIRE)--Figure Technology Solutions, a technology platform powering an efficient, liquid, blockchain-based marketplace for financial products, today announced that Synergy One Lending, a leading mortgage financing company, is the first institutional client to fund through its Democratized Prime platform – a milestone reflecting rising demand among corporate treasury functions for smarter, higher-yield cash management solutions.
Democratized Prime and specifically its HELOC pool, is Figure’s decentralized marketplace that operates as a short-term lending warehouse line for originators in the Figure ecosystem. The Democratized Prime marketplace combines daily liquidity with transactions backed by real assets, all at the scale demanded by large institutions. Synergy One is earning yield on its corporate treasury by lending against HELOCs originated with Figure’s technology. Democratized Prime offers institutions like Synergy One the flexibility to separately use Democratized Prime as a financing solution, as it can use the platform to also fund HELOCs it originates, as balance sheet needs change.
For Synergy One, the move reflects a dual strategy: putting idle treasury capital to work at significantly better yields than traditional options, while also locking in future competitive funding for its mortgage business. At a time when most Treasuries are earning 3-4% on excess cash, Democratized Prime currently offers returns in the 9% range, without the complexity or risk profile of alternatives.
“It’s rare to find a product that supports both sides of our balance sheet,” said Steve Majerus, CEO of Synergy One. “With Democratized Prime, we’re getting efficient funding and a strong return on capital, through assets we value and a process that’s incredibly straightforward.”
“Synergy One was one of the first companies to adopt Figure’s embedded HELOC model and to use Figure Connect. Their use of Democratized Prime augurs the growth of this new DeFi marketplace as Figure partners will similarly follow in Synergy One’s footsteps,” said Michael Tannenbaum, CEO of Figure Technology Solutions. “Corporate treasurers are looking for smarter capital allocation options, and with Democratized Prime, we’re delivering liquidity, yield, and simplicity to institutions that have long been underserved.”
Today’s announcement follows the news of the planned merger of Figure Technology Solutions and Figure Markets, a move set to pioneer the next generation of global capital markets powered by blockchain.
Figure recently launched Democratized Prime for institutions seeking a simple, transparent way to earn more on their short-term capital. Investors access overcollateralized, short-duration claims tied to real assets, starting with mortgage warehouse lines, through a structure designed for daily settlement and clear reporting. To learn more about Democratized Prime, visit https://www.figuremarkets.com/c/democratized-prime.
About Figure Technology Solutions
Figure Technology Solutions is a blockchain-native capital marketplace that seamlessly connects origination, funding, and secondary market activity. More than 175 partners use its loan origination system and capital market. Collectively these partners have originated over $16 billion of home equity to date, among other products, making Figure’s ecosystem the largest non-bank provider of home equity financing. The fastest growing component is Democratized Prime, Figure’s on-chan lend-borrow marketplace. It also includes DART (Digital Asset Registry Technology) for asset custody and lien perfection, and YLDS – an SEC-registered yield-bearing stablecoin that operates as a tokenized Money Market Fund.
Figure is the market leader in real world asset (RWA) tokenization and its most recent securitization received a AAA rating from S&P, the first of its kind for blockchain finance. For more information, visit https://figure.com or follow Figure on LinkedIn.
1Merger is expected to close later this summer, subject to shareholder approval and the satisfaction or waiver of closing conditions, including all necessary approvals or consents from any governmental entity with jurisdiction over the companies’ activities.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the foregoing securities.
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